The Yield Curve and Our Weakened Economy

Jon Alternative Media, Economy

So far in August the differential between the yield on the 10-year Treasury note and the yield on the 3-month Treasury bill stands at 2.38 percent against 2.95 percent in December 2013.
Historically, the yield differential on average has led the yearly rate of growth of industrial production by fourteen months. This raises the likelihood that the growth momentum of industrial production will ease in the months ahead, all other things being equal.

This post was published at Ludwig von Mises Institute on Monday, September 01, 2014.